QUESTION 1 2 points Save Answer A key theme fundamental to all of Economics is: O a. There are limited wants. 0 b. We are a rich country but are simply not aware of it O c. People have unlimited wants facing limited means to satisfy them Q d.There are unlimited resources QUESTION 2 2 points Save Answer In China, which of the following would not be a resource in the production of rice? 0 a.fertile land 0 b. labor 0 c. capital equipment 0 d. money QUESTION 3 2 points Save Answer Figure 1 Figure 1 MC Marginal Cost Marginal Benefit, MB 2 Time Spent Studying (hours) Refer to figure 1 above. If the student whose study habits are illustrated here is currently studying for 4 hours she should O a. cut back on the number of hours she is studying because the marginal benefit of studying for 4 hours is greater than the marginal cost of doing so. O b. cut back on the number of hours she is studying because the marginal benefit of studying for 4 hours is less than the marginal cost of doing so. O c. increase the number of hours she is studying because the marginal benefit of studying for 4 hours is less than the marginal cost of doing so. O d. increase the number of hours she is studying because the marginal benefit of studying for 4 hours is greater than the marginal cost of doing so.QUESTION 4 2 points Save Answer In economics, a synonym for utility is O a. service 0 b. good 0 c. satisfaction 0 d.cost QUESTION 5 2 points Save Answer You can spend $100 on either a new Physics textbook or a new CD player. If you choose to buy the new Physics textbook, the opportunity cost is: O 1.$100. O 2. your enjoyment of the new CD player. 0 3. both the $100 and the your enjoyment of the new CD player 0 4. impossible to determine. QUESTION 6 See figure below: The point where the PPF intersects the horizontal axis at 500 is Quantity of guns (units) A 1,000 B 900 800 C H 700 600 D G 500 Production possibilities frontier (PPF) 400 E 300 200 100 F 100 200 300 400 500 Quantity of butter (tons) O a. attainable & efficient. O b. attainable but inefficient. O c. unattainable. O d. attainable & nieither efficient nor inefficient.QUESTION 7 The production possibility frontier (PPF) illustrates that: O a. the economy will automatically end up at full employment. O b. an economy's productive capacity increases proportionally with its population O c. if all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced. O d. economic production possibilities have no limit. QUESTION 8 GDP is defined as O a. the total number of all goods and services produced in a country in a given period of time. O b. the total dollar value of all goods and services produced in a country in a given period of time. O c. the total dollar value of all final goods and services produced in a country within a given year. O d. the total dollar value of all final goods and services produced by all Americans anywhere in the world within a given year. QUESTION 9 In the expenditure approach of measuring GDP investment includes inventories, inventories is defined to be O a. returned goods by consumers. O b. goods produced but not sold by producers. O c. unwanted goods by producers. O d. services.QUESTION 10 Suppose the total market value of all nal goods and services produced this year in economy X is $4 million. Of the $4 million worth of goods, $3 million is sold and $1 million is held in inventory. For this year, the GDP for economy X is O a. $4 million. 0 b. $3 million. 0 c. $1 million. 0 d. $7 million. QUESTION 11 If Real GDP was $8,814 billion in year 2 and it had been $8,509 billion in year 1, what was the approximate economic growth rate during this time period? 0 a. 9.73 percent 0 b.4.67 percent 0 c. 3.58 percent 0 d.2.74 percent
